1. Market Review: Citric Acid Market Prices Continued to Fluctuate Slightly This Week
Citric acid manufacturer quotes remained stable this week, but transaction prices declined to stimulate contract signings. Traders were largely on the sidelines, with trading activity stable and replenishment occurring as demand shifted, leading to a bearish outlook. As of Thursday, leading Shandong producers were quoting ex-factory prices for citric acid monohydrate at 5,300-5,700 yuan/ton, anhydrous citric acid at 5,700-6,200 yuan/ton, and sodium salt at 5,300-5,900 yuan/ton.
Data from Zhuochuang Information shows that as of September 11, the average weekly price of citric acid monohydrate was 4,533.9 yuan/ton, down 0.35% from the previous week and 6.03% year-on-year. The average weekly price of citric acid anhydrous was 5,062 yuan/ton, down 0.41% from the previous week and 2.65% year-on-year.
2. Driving Factors: Intense Market Competition, Insufficient Demand Support
This week, the citric acid industry's operating capacity was 51.65%, with weekly output of 26,900 tons, stable compared to the previous week. Citric acid prices have recently continued to decline, with fierce market competition and limited enthusiasm for production, resulting in low industry inventories. Industry inventories are estimated to be between 92,000 and 115,000 tons. Domestic citric acid demand was relatively weak this week, with downstream markets primarily restocking on demand and a cautious wait-and-see attitude prevailing. Exports were relatively stable, with demand providing only limited support from domestic demand, leading to a slight downward trend in prices.
3. Market Forecast: Citric acid prices may stabilize in the short term.
Forecast: Citric acid market supply may increase slightly next week, while demand will remain on a demand-driven basis. Cautious wait-and-see sentiment is prevalent, with a buy-to-let-go mentality. Regarding raw materials, corn prices are expected to decline slightly next week as new grain arrives, weakening the support provided by costs. Based on a comprehensive analysis of market supply, demand, and costs, Zhuochuang Information predicts that citric acid prices will remain stable for the time being next week, with the average price of citric acid monohydrate at 4,513 yuan/ton. Some downward movement is expected later in the week. It is important to monitor actual price fluctuations in orders placed by companies.
Source: Zhuo Chuang Information)